Customers purchasing or renewing our taxable SaaS product/s that comply to any of the eligibility criterions mentioned below are subject to tax according to the Service Tax Act of 2018. Effective 1st January 2020, service tax shall be charged and levied on any digital service provided by Freshworks Inc. to any consumer in Malaysia as we fall under the category of a foreign registered person (FRP).
Malaysian customers purchasing or renewing our SaaS products are subject to service tax at the rate of 6%, according to the Malaysian Service Tax Act 2018.
Note: Our list price does not include tax, which will be a separate component in the invoice.
According to the Service Tax Act of 2018, any customer who satisfies any two of the following is eligible to pay service tax:
Anyone with billing address in Malaysia;
Anyone paying for services using a credit or debit facility provided by any financial institution or company in Malaysia;
Anyone who resides in Malaysia.
Under the Service Tax Act 2018, there are no exemptions with respect to service tax on digital services rendered by a foreign registered person (FRP). If there is an exemption granted to you by the authorities, please contact us with your exemption documentation.
For Reseller or Partner orders, the application of service tax is based on the location of the Reseller/Partner and not on the location of the customer or technical contact.
Service tax is applicable on all invoiced charges including implementation and training fee.
You may approach your Freshworks’ Account Manager if you have any questions regarding service tax collection, refund or exemption. You may also reach out to our finance support team.
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